Goldman replaced Morgan Stanley as the number one issuer in the US structured products market during Q1 2022.
Some US$26.6 billion was collected from 8,561 structured products (an average of US$3.1 per product) in the first quarter of 2022 – a slight increase from Q1 2021 (US$26.3 billion from 8,085 products). Sales and issuance were also up compared to Q4 2021 when US$24.6 billion was collected from 8,054 products.
Goldman Sachs was the most prolific issuer during the quarter. The bank captured a 15.5% share of the US market with sales of US$4.1 billion from 1,057 products (Q1 2021: US$3.5 billion from 928 products).
A large chunk of Goldman’s sales (US$920m) came from 91 structures that were distributed via Morgan Stanley Smith Barney LLC (Morgan Stanley Wealth Management). Considerable sales were also achieved via InspereX - formerly Incapital (US$475m), UBS (US$445m), and Raymond James (US$111m).
Almost halve of the bank’s sales in the quarter, at US$2 billion, was tied in 458 products linked to the S&P 500. The Russell 2000 (US$586m from 247 products) and Eurostoxx 50 (US$573m from 154 products) were also in demand as was the proprietary GS Momentum Builder Focus ER Index (US$93m from 25 products).
In second, Citi increased its market share to 13% with sales of US$3.5 billion from 1,152 products while J.P. Morgan completed the top three, accumulating sales of US$3.2 billion from 1,606 products (12% market share).
Morgan Stanley, which was the main issuer in Q1 2021, saw its market share decrease by 3.5% to 11.6%, and a noticeable drop in sales was also seen by Barclays, which lost five percent in market share year-on-year.
The only newcomer in the top 10 was Bank of America (BofA), which replaced Scotiabank.
BofA was also responsible for the best-selling product of the quarter, albeit as a distributor. Its Accelerated Return Notes (78015B856) on the S&P 500, which were issued on the paper of RBC, collected sales of US$140m during its subscription period.